The Kerala government has ordered an increase in Dearness Allowance (DA) and Dearness Relief (DR) for teaching staff under the University Grants Commission (UGC) and All India Council for Technical Education (AICTE) schemes. This hike also covers UGC pensioners and family pensioners. The enhanced rates will take effect with salaries due for October 2025 and pensions due for November 2025 .
Increased Rates for Teaching Staff and Pensioners
The finance department announced specific increases for various groups. Teaching staff under UGC and AICTE schemes who shifted to the revised pay scale from January 2016 or later will see their DA rise from 42% to 46% . For those teaching staff continuing in the sixth pay scale, effective from January 2006 , the DA will increase from 221% to 230% .
UGC pensioners and family pensioners whose pensions were revised according to the 2020 government order will have their DR increased from 42% to 46% . For those UGC pensioners and family pensioners whose pensions were not revised by the 2020 order, the DR rate will be raised from 221% to 230% .
Summary of Increases
The following table outlines the changes:
| Category | Previous Rate | New Rate | Increase |
|---|---|---|---|
| UGC/AICTE Teaching Staff (2016 Pay Scale) | 42% | 46% | 4% |
| UGC/AICTE Teaching Staff (2006 Pay Scale) | 221% | 230% | 9% |
| UGC Pensioners (2020 Revised Pension) | 42% | 46% | 4% |
| UGC Pensioners (Not 2020 Revised Pension) | 221% | 230% | 9% |
Applicability and Implementation
The enhanced DA applies to teaching staff in grant-in-aid institutions and other bodies. This is where UGC, AICTE, and medical education schemes are implemented through government orders. This is subject to fund availability. The increased DR rate applies only to institutions, including universities, that follow statutory pension systems as per government orders.
Employees and pensioners of state Public Sector Undertakings (PSUs), statutory corporations, autonomous bodies, boards, and grant-in-aid institutions following the state DA-DR pattern are also eligible. Their eligibility requires approval from their governing bodies if they can meet the expenses from their own resources. If they cannot cover the additional expenditure, prior government approval is mandatory.
Organisations funded by government grants for more than 90% of salary or pension expenses can release DA and DR without prior government approval. They must still secure approval from their board of directors, governing body, managing committee, or executive committee.
Exclusions from This Order
The DA-DR enhancement does not apply to specific organisations. The Kerala State Electricity Board Ltd (KSEBL) and Kerala State Road Transport Corporation (KSRTC) are instructed to issue separate DA-DR orders. These organisations must follow their existing practices, including obtaining prior government approval where required, for sanctioning DA and DR to their employees and pensioners.
Recent State Government DA Hike
This follows a separate order issued by the finance department on Thursday. That order increased Dearness Allowance for state government employees, teachers, and staff of aided schools, private colleges, and polytechnics. It also covered full-time contingent employees and local body staff. Their DA rose from 18% to 22% . Dearness Relief for state service pensioners, family pensioners, ex-gratia pensioners, and ex-gratia family pensioners also increased from 18% to 22% .
Local governments are responsible for meeting the additional expenditure from their own funds. This enhanced DA rate extends to part-time teachers, part-time contingent employees based on their pay, and re-employed pensioners.